Bahrain Real Estate News
MPs seek approval of new real estate sales tax
MPs have yesterday called for approval of a new real estate tax by the Cabinet, claiming that the decree issued by H H Prime Minister Prince Khalifa bin Salman Al Khalifa, taxing property buyers, was unconstitutional and could harm the real estate market.
As per the decree, land buyers will be taxed 1.5percent of the value of total property value at less than BD70,000, 2percent for property valued between BD70,000 and BD120,000, and 3 percent for those purchasing property valued at BD120,000 and above.
The tax will be levied at the time of property purchase, but, the decree excludes those taking loans from the Eskan (Housing) Bank to purchase homes or build them.
However, commenting on the sales tax issue, the Parliament Legislative and Legal Affairs Committee Chairman, MP Khalil Al Marzooq, said that it is unconstitutional, as the fee needs to be approved by the National Assembly, and it is being introduced at the wrong time, when people are unable to afford property purchase and are accepting loans from every bank possible. Hence, making them pay more is absurd.
Posted on 18/11/2009
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